An approved settlement between Volkswagen Canada and class counsel will have the automaker providing cash payments to eligible owners and lessees of up to 105,000 Volkswagen and Audi 2.0L TDI vehicles.

Volkswagen Canada and class counsel announced today that both the Québec and Ontario Courts have granted approval of the nationwide settlement agreement to resolve consumer claims in Canada related to the 2.0L diesel emissions cheating scandal.

The Ontario Court will also be subsequently providing additional reasons for granting approval.

The approved settlement agreement provides for cash payments to eligible owners and lessees of Volkswagen and Audi 2.0L TDI vehicles. Many of these settlement class members will also have choices that may include selling or trading in their vehicle, or terminating their lease without any early termination penalty, or keeping their vehicle and receiving an emissions modification that has been approved by regulators together with an extended emissions warranty.

Maria Stenstroem, Chief Executive Officer, Volkswagen Group Canada, called the approval an important milestone in the journey to making things right in Canada.

“Volkswagen Group Canada is committed to ensuring that the settlement program is carried out as conveniently as possible for our affected Volkswagen and Audi 2.0L TDI customers. We are devoting significant resources and personnel to ensuring their experience with the settlement program is a positive one,” she said in a release.

Charles Wright, a partner at Siskinds LLP and one of the lead counsel for vehicle owners, said the settlement responds to the concerns raised by customers across the country and that they are pleased it will finally be implemented.

The approved nationwide settlement program includes:
– Cash payments to eligible current and former owners and lessees of approximately 105,000 affected vehicles nationwide.

– Many of these settlement class members are also eligible to choose to sell their vehicle to Volkswagen (the buyback option) or terminate their lease without any early termination penalty, or, if an emissions modification is approved, keep their vehicle and have it modified at no charge and receive an extended emissions warranty.

– A vehicle’s value for a buyback will be determined based on the Canadian Black Book® Inc. wholesale value as of September 18, 2015, with adjustments for factory options and mileage at the time of the buyback offer.

– Eligible owners can also choose to trade in their vehicle and apply its fair market value at the time of the trade-in towards the purchase of a new or used Volkswagen or Audi vehicle. In addition, they will receive payment of any amount by which their vehicle’s wholesale value as of September 18, 2015 exceeds its fair market value at the time of the trade-in.

Starting on April 28, Canadian settlement class members and U.S. customers with affected 2.0L TDI vehicles that were first sold or leased in Canada may submit claims for benefits under the settlement by way of an online portal set up by the automaker.